**Ethereum Co-Founder Sets Deadline for Layer 2 Networks**

Vitalik Buterin, Ethereum's co-founder, announced on Sept. 12 that networks must achieve "Stage 1" by the end of the year to be considered true "layer 2" solutions. This stage ensures networks rely on Ethereum's security, enhancing trust in user fund protection.

The urgency follows a $2.6 million exploit on Velocore, a network claiming to be a layer 2 but failed to prevent the attack. Critics argue Ethereum's decentralization is too slow.

Currently, only a few networks like Arbitrum One and Optimism have reached Stage 1. Others, including Coinbase's Base, are still in progress. The push for decentralization continues.